AR: Allocated Billing

Overview

The AR Allocated Billing process can automatically split billing (invoices) on a percentage base across multiple customers and service locations. This increases billing efficiency and accuracy reducing administrative overhead.

You can leverage a single Job for scheduling, setting up taxes, and job costing, while also customizing the name and address of the Job when printing on the invoice.

This feature is targeted for multi-tenant service locations, like malls and business parks, and you can use Your accounting and operations staff can use it to bill multiple customers for work performed from a single schedule. Allocated Billing eliminates the need for creating separate "jobs" to bill for this type of contract.

You can also create credit memos for ALL invoices in a split invoice group. This will ensure that the proper corrections/credits to posted invoices are made efficiently and accurately.

This feature is also a great value-added service that will distinguish your organization from your competitors by assisting with your client's cost center allocation in-house, all while reducing your administrative overhead.

SCENARIO 1
Multiple Service Location Description (each store), but with a single customer (the property manager)

Example:  You employ a single security officer to patrol a strip mall with three stores. Your contract is with the property manager (a single contract for the strip mall). The property manager is ultimately responsible for ensuring the invoices are paid, but the property manager passes the cost of the security officer directly to the three store owners.
The total billing, including the hourly cost of the officer and any equipment (like cell phones and vehicles), is divided according to a contractually-defined allocation. For example, you might bill each of the three store owners for 20, 30, or 50 or percent.

SCENARIO 2
Single Service Location Description (the business park), but with multiple customers (the businesses)

Example:  You employ a single security officer to patrol a business park with three businesses. Your contract is with the business park owner, but you bill the work directly to the three businesses, and the business owners are responsible for payment. Each business owners receives a portion of the total bill based on the occupied square footage (or some other externally determined value).

SCENARIO 3
Single Customer (the property manager), but with multiple customers (the businesses)

Example:  A single property is rented by multiple businesses who share the cost of the guard (based on some allocation), with a single contract with the property manager. You issue multiple invoices to the property manager, who pays them together, but then rebills the businesses for internal payment.

Key Functionality

Related Information

Set up Allocated Billing

Changing the Service Location Name and Address on Allocated Invoices

Previewing and Processing Allocated Invoices

Creating Credit Memos for Allocated Invoices

Allocated Billing FAQ's